REGULAR MEETING April 8, Council Member Shearer gave the invocation and Mayor Byrd led everyone in the Pledge of Allegiance.

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1 REGULAR MEETING April 8, 2014 At a regular meeting held this evening at 7:00 p.m., there were present: Mayor Ted Byrd; Vice-Mayor Charles Chenault; Council Members Richard A. Baugh, Kai Degner and Abe Shearer. Also present: City Manager Kurt D. Hodgen; Assistant City Manager Anne C. Lewis; City Attorney G. Chris Brown; City Clerk Erica S. Kann; Chief of Police Stephen Monticelli. Absent: None. Council Member Shearer gave the invocation and Mayor Byrd led everyone in the Pledge of Allegiance. Mayor Byrd declared the following with proclamations: April 6-12, 2014 Week of the Young Child and April as Child Abuse Prevention Month; April 25, 2014 Arbor Day along with Blacks Run Cleanup Day and the Arbor Celebration on April 12, 2014; and April 13-19, 2014 as National Public Safety Telecommunications Week. Bucky Berry, 30 West Washington Street, stated he has noticed more gang taggings in the downtown area and feels more money should be given towards the Gang Task Force. Mr. Berry would also like the City to move towards a 400 digital radio system to save money. Vice-Mayor Chenault offered a motion to approve the following on the consent agenda: a. Approval of minutes of the previous meeting, and dispensing with reading of minutes b. Consider a supplemental appropriation for the schools operating fund in the amount of $533,166 c. Refer a request to Planning Commission to close Wilson Avenue and Boulevard Avenue The motion was seconded by Council Member Degner and approved with a recorded roll call vote taken as follows: Yes Council Member Baugh, Mayor Byrd, Council Member Degner, Vice- Mayor Chenault and Council Member Shearer No None Ande Banks, Director of Special Projects and Grant Management, presented the Action Plan for the Community Development Block Grant (CDBG) Program. Mr. Banks stated staff began the process off of last year s allocation, but they have now received the actual allocation amount of $505,155 with the addition of $80, from previous years bringing the total to $586, Mr. Banks stated a total of $1.3 million in requests were received by both City departments and outside agencies and were reviewed by a selection committee. Mr. Banks stated within the block grant there are

2 four funding categories and reviewed the recipients of each category which were the following: housing and property improvements: Harrisonburg-Rockingham Housing Authority (HRHA) Harrison Heights Renovation and Mercy House (Small Mercies Expansion); community and public facilities: installation of traffic preemption devices II (Fire) and East Wolfe Street sidewalks (Public Works); administration: city administration costs; public services: fair housing activities (City Manager s Office), Boys and Girls Club (T.A.B.L.E.T.), VPAS (Meals on Wheels), IIHHS Suitcase Clinic, and Open Doors (Emergency Shelter). Mr. Banks stated no action was currently needed, but tonight opened a 30-day public comment period that would end May 10, Mr. Banks noted that all projects weren t funded until final approval from Housing and Urban Development (HUD) was received. Council Member Degner asked if there were an increase of projects received that could be eligible for funding. Mr. Banks replied yes, and stated trainings were held with a great turn out and it helps applicants see how their agency would fit under HUD guidelines. Mayor Byrd closed the regular meeting and called the evening s first public hearing to order at 7:13 p.m. The following notice appeared in the Daily News-Record on Monday, March 31, 2014: CITY OF HARRISONBURG ACTION PLAN PUBLIC HEARING/COMMENT NOTICE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM The City of Harrisonburg will hold a public hearing on Tuesday, April 8, 2014, at 7:00 PM in the City Council Chambers, 409 South Main Street, in order to receive citizen input regarding the Action Plan for the Community Development Block Grant (CDBG) Program. Citizen participation is essential to the City s involvement in the Federal Department of Housing & Urban Development s (HUD) CDBG Program. The Action Plan serves as the planning document for addressing overall community development and housing needs that will utilize the estimated $612, entitlement of CDBG funding available to the City for Projects selected to receive this funding will be included in the Action Plan. All citizens and organizations are invited to attend the public hearing to comment orally or in writing on the HUD FY 2014 Action Plan. The City of Harrisonburg will make reasonable accommodations and services necessary for sensory-impaired and disabled citizens at the public meeting. Additionally, translation services may be offered upon request and availability. Persons requiring such accommodations/services should contact Ande Banks at (540) at least three working days in advance of the meeting. Copies of the Action Plan will be available at the City Manager s Office, 345 South Main Street, Harrisonburg between 8:00 AM and 5:00 PM, Monday through

3 Friday, and at the reference desk at the Massanutten Regional Library for a 30 day public comment and review period which begins April 8, The Action Plan will also be posted on the City website at on this date. Written comments may be mailed to Kristin McCombe, grants Compliance Officer, Office of the City Manager, 345 South Main Street, Harrisonburg, VA Comments may also be submitted by calling (540) or ing CDBG@ci.harrisonburg.va.us. Comments are welcomed prior to the start of the review period, but all comments should be received no later than 9:00am on May 10, 2014, to be considered. Karen Thomas, 158 East Johnson Street, asked Council to recommend Northeast Neighborhood Association to be granted funds through the CDBG Program to install a protective enclosure surrounding the Newtown Cemetery. Ms. Thomas stated the trustees of Newtown Cemetery have wanted the area fenced in for many years and assumed there have never been enough funds to complete the task. Ms. Thomas stated on December 12, 2013 the State Review Board concurred with the State of Historic Resources that the Newtown Cemetery is eligible for nomination to the National and State registers. Stan Maclin, Harriet Tubman and Cultural Center & Board Member of NENA, also spoke in support of the Newtown Cemetery request. At 7:19 p.m., Mayor Byrd declared the public hearing closed and the regular meeting reconvened. Stacy Turner, Community Development Director, presented a request from 164 W. Bruce, LLC to close 1,434 +/- square feet of public street right-of-way (ROW) at the northeastern corner of the intersection of West Bruce Street and Old South High. Mrs. Turner stated in November 2013, the applicant s comprehensive site plan for the private parking lot currently under construction demonstrated utilizing the ROW in the design of the parking lot. The area in the plan serves mainly as the required 10-foot landscaping buffer along the West Bruce Street frontage with portions of a retaining wall also being in this area. The City approved the comprehensive site plan noting that work in this area [the public ROW] shall not proceed until developer acquires the necessary strip of ROW from the City. If this transaction does not occur, then modifications to this plan will be required such to meet City standards without reliance on this strip of property. Mrs. Turner stated that this area has been constructed upon and incorporated into the private parking lot s design, which is why the request is before Council for their consideration. It was noted that a 10 easement be reserved by the City for waterline maintenance. Mrs. Turner stated both staff and Planning Commission recommend for approval with the 10 waterline easement as presented. Mayor Byrd closed the regular meeting and called the evening s second public hearing to order at 7:24 p.m. The following notice appeared in the Daily News-Record on Monday, March 24, 2014 and Monday, March 31, 2014.

4 NOTICE OF PUBLIC HEARING The Harrisonburg City Council will hold a Public Hearing on Tuesday, April 8, 2014, at 7:00 p.m., or as soon as the agenda permits, in City Council Chambers 409 South Main Street, to consider the following: Special Use Permit Urban Exchange Brewery Manufacturing (C-City, LLC) Public hearing to consider a request from C City LLC with representative Matchbox Realty and Management Services, Inc. for a special use permit per Section (1) of the Zoning Ordinance to allow manufacturing, processing and assembly operations when not employing more than fifteen (15) persons on the premises in a single shift and provided that all storage and activities are conducted within a building. The proposed business would be a brewery operation. The /- acre property is zoned B-1, Central Business District, has multiple addresses including 241 East Market Street, the planned unit address, and can be found on tax map 26-A-1. Street Right-Of-Way Closing Intersection of West Bruce Street and Old South High Street Adjacent to 25-C-14 (164 W Bruce, LLC) Consider a request from 164 W Bruce, LLC to close 1,434 +/- square feet of public street right-of-way at the northeastern corner of the intersection of West Bruce Street and Old South High Street. The area to be closed and purchased is adjacent to tax map 25-C-14. For any additional information, contact the Community Development Department, 409 South Main Street, Monday through Friday, 8:00am to 5:00pm. All persons interested will have an opportunity to express their views at this public hearing. Any individual requiring auxiliary aids, including signers, in connection with the public hearing shall notify the City Manager at least five (5) days prior to the date of the meeting. CITY OF HARRISONBURG Kurt D. Hodgen City Manager At 7:25 p.m., Mayor Byrd declared the public hearing closed and the regular meeting reconvened. Council Member Baugh offered a motion to approve the ROW and vacation request as presented. The motion was seconded by Vice-Mayor Chenault and approved with a recorded roll call vote taken as follows: Yes Council Member Baugh, Mayor Byrd, Council Member Degner, Vice- Mayor Chenault and Council Member Shearer

5 No None Mrs. Turner presented a request from C City, LLC with representative Matchbox Realty and Management Services, Inc. for a special use permit (SUP) for a proposed brewery. Mrs. Turner stated the operation is located at 241 East Market Street and the Comprehensive Plan designates this area as Mixed Use Development and reviewed the surrounding property. Mrs. Turner stated the applicant is requesting a SUP per Section (1) of the Zoning Ordinance. If approved, Three Notch d Brewing Company LLC, would operate a brewery operation and taproom within a 2,100 +/- square foot unit in the northeastern portion of Urban Exchange. Mrs. Turner stated the company currently operates in Charlottesville and is looking to expand their operations to the City, where they plan to manufacture beer that would be unique to Harrisonburg. The beer would be sold from their taproom and in kegs to other businesses upon request. The beer manufactured in Harrisonburg would be bottled for resale; it would only be made and then stored in kegs. Mrs. Turner noted that in addition to the beer manufactured on site, they would also sell beer made from their Charlottesville location at the site and sell merchandise. Mrs. Turner stated the company would personally transport the raw materials in the back of a car from their main location in Charlottesville. Mrs. Turner stated staff and Planning Commission believe the brewery should have no adverse affect on the health, safety, or comfort of those working and living in the area and is compatible with uses generally permitted in the B-1 zoning district. Mayor Byrd closed the regular meeting and called the evening s third public hearing to order at 7:28 p.m. The above notice appeared in the Daily News-Record on Monday, March 24, 2014 and Monday, March 31, At 7:29 p.m., Mayor Byrd declared the public hearing closed and the regular meeting reconvened. Council Member Baugh offered a motion to approve the SUP request. The motion was seconded by Council Member Shearer and approved with a recorded roll call vote taken as follows: Yes Council Member Baugh, Mayor Byrd, Council Member Degner, Vice- Mayor Chenault and Council Member Shearer No None John Langhans, Harrisonburg Police Officer, reviewed the request to enact Section of the Harrisonburg City Code to add restrictions on solicitations, begging, etc. Officer Langhans stated this is not an ordinance to limit first amendment rights, but as a resource to help officers handle aggressive panhandling. Officer Langhans stated from January 1, 2014 through March 27, 2014 the Emergency Communications Center (ECC) received 22 calls about panhandling. Office Langhans stated of those 22 calls, only four (4) would have been covered under the proposed

6 ordinance. Officer Langhans stated those are the numbers that were only received by ECC. It doesn t include the ones that were discussed in public, phone, or by him and other officers. Officer Langhans provided examples of what type of aggressive panhandling has been seen. Officer Langhans stated he would like to have the law in place before and if it becomes more of a problem. Mayor Byrd closed the regular meeting and called the evening s fourth public hearing to order at 7:34 p.m. The below notice appeared in the Daily News-Record on Saturday, April 5, 2014: NOTICE OF PUBLIC HEARING ON ENACTING AN ORDINANCE TO PLACE RESTRICTIONS ON SOLICITATIONS, BEGGING, ETC. IN THE CITY OF HARRISONBURG The Harrisonburg City Council will hold a public hearing on April 8, 2014 at 7:00 P.M. or as soon as the agenda permits, in the City Council Chambers located at 409 South Main Street, Harrisonburg, Virginia, to solicit public comments concerning the possibility of enacting an ordinance prohibiting aggressive soliciting and begging in the City of Harrisonburg and prohibiting solicitations or begging on public transportation vehicles, at bus stops and bus stations, and within 30 feet of bank entrances or ATM machines in the City of Harrisonburg. Copies of the proposed ordinances are available on the City s web site and are available in the City Manager s Office, 345 South Main Street, Harrisonburg, Virginia, Monday through Friday, 8:00 A.M. to 5:00 P. M. All persons interested will have an opportunity to express their views at this public hearing. Any person requiring auxiliary aids, including signers, in connection with this public hearing shall notify the City Manager at least five (5) days prior to the time of the hearing. CITY OF HARRISONBURG Kurt D. Hodgen, City Manager Jeff Hill, Managing Partner of Local Chop and Grill House, stated he is in support of this ordinance and Officer Langhans efforts. Mr. Hill stated he has seen an increase of number of those soliciting to his guests and workers after leaving the premises. Mr. Hill stated the HPD has recommended staff members who walk to and from work to walk in pairs. Mr. Hill again showed his support towards this ordinance. Lauren Penrod, Owner Midtowne Market, stated she is also in the process of opening another business on West Water Street and says in the last four years she has seen an increase number of solicitors. Ms. Penrod stated her solution has been to refuse service to those who have been consistently panhandling outside her store, which hasn t solved the problem. Ms. Penrod stated she felt that there were hot spots in the downtown area such as Pure Station, pedestrians coming for the Chop House, and West Water Street area. Ms. Penrod stated she has gotten HPD involved a few times, but it is something she

7 doesn t always have time for when the Market is busy. Ms. Penrod noted that it is usually the same suspects and she too was also was in support of the ordinance. Bucky Berry, 30 West Washington, stated there weren t a lot jobs and panhandling has been challenged in other jurisdictions. Mr. Berry stated he doesn t have a problem with people asking for money, but does have a problem with people being threatened. Mr. Berry stated there is a problem with homelessness and doesn t want to go overboard with the ordinance. At 7:41 p.m., Mayor Byrd declared the public hearing closed and the regular meeting reconvened. Officer Langhans presented the following ordinance for Council s consideration: ORDINANCE ENACTING SECTION OF THE CODE OF ORDINANCES CITY OF HARRISONBURG, VIRGINIA Be it ordained by the Council of the City of Harrisonburg, Virginia: That Section Restrictions on solicitations, begging, etc. (a) The purposes of the solicitation restrictions imposed under this section are to: (1) Reduce the detrimental effect that threatening and intimidating conduct has on a safe environment in the city; (2) Restrict certain aggressive acts of solicitors without prohibiting constitutionally protected activity; and (3) Maintain the peace and order of the City and preserve and protect the rights of all citizens to be free of intimidation. (b) No person shall solicit, ask, or beg in an aggressive manner, as defined herein, in any public place; or solicit, ask or beg (1) In any public transportation vehicle, or bus station or stop; provided, however, that this paragraph shall not apply to services rendered in connection with such transportation services. (2) Within thirty (30) feet of any entrance or exit of any bank during the hours of operation of such bank. (3) Within thirty (30) feet of any automated teller machine, during the hours of operation of such machine. (4) On private property, if the owner, tenant, or lawful occupant has asked the person not to solicit on the property, or has posted a sign clearly indicating those solicitations are not welcome on the property.

8 (c) Definitions. The following words, terms, or phrases shall have the following meanings ascribed to them in this section, except where the context clearly indicates a different meaning: (1) Solicit, ask, or beg means using the spoken, written, or printed word or bodily gestures, signs, or other means for the purpose of soliciting a ride, contributions, employment, business, or with the purpose of obtaining an immediate donation of money or other thing of value or soliciting the sale of goods or services regardless of the solicitor's purpose or intended use of the money or other thing of value. (2) Aggressive manner means and includes: (i) Touching or causing physical contact with another person without that person's consent in the course of soliciting, asking, or begging; (ii) Blocking the safe or free passage of a pedestrian or vehicle by any means, including unreasonably causing a pedestrian or vehicle operator to take evasive action to avoid physical contact in the course of soliciting, asking, or begging; (iii) Approaching or following the person being solicited, if that conduct is: (i) intended to or is likely to cause a reasonable person to fear bodily harm or the commission of a criminal act upon the person or property in the person's possession; or (ii) is intended to or is reasonably likely to intimidate the person being solicited into responding affirmatively to the solicitation; (iv) Continuing to solicit the person being solicited after the person has made a negative response, if continuing the solicitation is: (i) intended to or is likely to cause a reasonable person to fear bodily harm or the commission of a criminal act upon the person or property in the person's possession; or (ii) is intended to or is reasonably likely to intimidate the person being solicited into responding affirmatively to the solicitation; (v) Using violent, obscene, or threatening gestures or language toward a person solicited, if such conduct is intended to or is likely to cause a reasonable person to fear bodily harm to oneself, or the commission of a criminal act upon the person or upon property in the person's possession or otherwise be intimidated into giving money or other thing of value or buying merchandise. (3) Public area means an area to which the public has access, including, but not limited to: alleys, bridges, buildings, driveways, parking lots, playgrounds, sidewalks, streets open to the general public, and the doorways and entrances to public buildings, together with the grounds enclosing them.

9 (d) The provisions of this section shall not apply to any person soliciting transportation in the case of a bona fide emergency, or from public transportation or transportation for hire. Acts constituting an exercise of a person's constitutional right to picket, protest, or speak and acts authorized by a permit issued by the City shall not constitute unlawful activity under this section; nor does aggressive solicitation include solicitation without engaging in the acts specifically prohibited by this section. (e) Any person convicted of a violation of this section shall be guilty of a class 2 misdemeanor. Any person convicted of a second or subsequent violation of this section shall be guilty of a class 1 misdemeanor. This ordinance shall be effective from the day of, Adopted and approved this day of, ATTESTE: MAYOR CITY CLERK It was noted that this ordinance was City wide, not just for the downtown area. Council Member Shearer offered a motion to enact Section of Harrisonburg City Code. The motion was seconded by Vice-Mayor Chenault and approved with a recorded roll call vote taken as follows: Yes Council Member Baugh, Mayor Byrd, Council Member Degner, Vice- Mayor Chenault and Council Member Shearer No None Larry Propst, Finance Director, presented a request to consider the issuance of up to $15,000,000 in general obligation bonds to finance several capital projects. Mr. Propst introduced Ted Cole, Financial Advisor and Steve Johnson, Bond Counsel. Mr. Propst stated the resolution is specifically to be used for the new municipal building, energy efficiency improvements at several city-owned facilities and for a landfill remediation/athletic field project on Ramblewood Road. Also, included in the bond resolution is a not-to-exceed bond amount of $50 million for the potential refinancing of existing debt in order to lower debt service costs. Mr. Propst stated parameters were inserted in the resolution such as; refinancing has to generate at least 3% for the value savings prior to moving forward. Mr. Cole stated he is tracking not only for new money but also refinancing that could include bonds issued in 2005 general obligation and 2006 with only two portions being tracked for HRHA (which they service the debt) and the lions share for the Middle and Elementary School project. Mr. Cole stated they are producing savings of

10 approximately $1.7 million and are leveled at approximately $160,000 per year and are meeting the parameter of 3%. Mr. Cole stated the anticipated target date is mid-may to lock in the interest rates and late May - early June to close and have funds available. The resolution includes the parameters that have to be met during the process. Mr. Cole stated rates are currently favorable due to low supply. Mayor Byrd closed the regular meeting and called the evening s fifth public hearing to order at 7:51 p.m. The below notice appeared in the Daily News-Record on Tuesday, March 25, 2014 and Tuesday, March 1, 2014: NOTICE OF PUBLIC HEARING ON PROPOSED ISSUANCE OF BONDS BY THE CITY OF HARRISONBURG, VIRGINIA Notice is hereby given that the City Council of the City of Harrisonburg, Virginia (the Council ) will hold a public hearing on the proposed issuance by the City of Harrisonburg, Virginia (the City ), without a referendum and subject to final approval, of general obligation bonds in a principal amount not to exceed $15,000,000 (the Bonds ) to (a) finance a portion of the costs of (i) certain energy efficiency upgrades to several city-owned facilities, (ii) a landfill remediation/athletic field restoration project located on Ramblewood Road, and (iii) a new municipal building. The Bonds may be issued from time to time and in one or more series. The public hearing, which may be continued or adjourned, will be held at 7:00 p.m. on Tuesday, April 8, 2014, before the Council at a regularly scheduled meeting in the Council Chambers at 409 South Main Street in Harrisonburg, Virginia Any person interested in the issuance of the Bonds and the purposes for which the Bonds are being issued may appear at the hearing and present his or her views. CITY OF HARRISONBURG, VIRGINIA Kurt D. Hodgen, City Manager At 7:52 p.m., Mayor Byrd declared the public hearing closed and the regular meeting reconvened. It was suggested to approve the resolution as presented so the process of the bond issuance isn t delayed and the Finance Committee has time to review the numbers. The following resolution was presented for Council s consideration: RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS, SERIES 2014A AND GENERAL OBLIGATION PUBLIC IMPROVEMENT REFUNDING BONDS, SERIES 2014B, OF THE CITY OF HARRISONBURG, VIRGINIA, AND PROVIDING FOR THE FORMS, DETAILS AND PAYMENT THEREOF

11 The City of Harrisonburg, Virginia (the City ) wishes to finance a portion of the costs of (i) certain energy efficiency upgrades to several city-owned facilities, (ii) a landfill remediation/athletic field restoration project located on Ramblewood Road and (iii) a new municipal building (collectively, the Projects ). The City desires to provide such funding through the issuance of the City s general obligation public improvement bonds, which bonds would also pay costs of issuance. In addition, the City has determined that it could lower its debt service costs by issuing general obligation public improvement refunding bonds to refund its $7,250,000 General Obligation Bond, Series 2005 and $50,000,000 General Obligation Public Improvement Bonds, Series 2006 (collectively, the Prior Bonds ). The proceeds of the general obligation public improvement refunding bonds would be used to refund all or a portion of the Prior Bonds (the Refunded Prior Bonds ) and pay costs of issuance. The City is a political subdivision of the Commonwealth of Virginia, and pursuant to the Public Finance Act of 1991, Chapter 26, Title 15.2, Code of Virginia of 1950, as amended (the Act ), the City Council of the City of Harrisonburg, Virginia (the Council ) is authorized to contract debts on behalf of the City and to issue, as evidence thereof, bonds, notes or other obligations payable from pledges of the full faith and credit of the City. The Council held a public hearing, duly noticed, on April 8, 2014 with respect to the issuance of the general obligation public improvement bonds to finance the Projects. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HARRISONBURG, VIRGINIA: Section 1. Authorization, Issuance and Sale. The Council hereby determines that it is advisable to contract a debt and issue and sell its general obligation bonds for the purpose of (i) financing the Projects, (ii) refunding the Refunded Prior Bonds, including the payment of any redemption premium thereon, and (iii) financing the costs of issuing the bonds. There is hereby authorized to be issued and sold, pursuant to the Constitution and statutes of the Commonwealth of Virginia, including the Act, general obligation bonds of the City upon the terms set forth herein. The Council hereby elects to issue such bonds under the provisions of the Act without regard to the City Charter. Accordingly, the Council may adopt this Resolution at the meeting at which it is introduced. Section 2. Bond Details. The bonds shall be issued in two series, with the bonds being issued to finance the Projects being designated as General Obligation Public Improvement Bonds, Series 2014A (the 2014A Bonds ) and the bonds being issued to refund the Refunded Prior Bonds being designated as General Obligation Public Improvement Refunding Bonds, Series 2014B (the 2014B Bonds and, together with the 2014A Bonds, the Bonds ). The proceeds of the 2014A Bonds will be used to finance the Projects and pay costs of issuance relating to the 2014A Bonds, and the proceeds of the 2014B Bonds will be used to refund the Refunded Prior Bonds and pay costs of issuance relating to the 2014B Bonds. The Bonds shall be dated the date of their execution and delivery, shall be in registered form and shall be in denominations of $5,000 and multiples thereof. The 2014A Bonds shall be numbered consecutively commencing with RA-1, and the 2014B Bonds shall be numbered consecutively commencing with RB-1. Subject to Section 4 and Section 9, the Bonds shall mature in installments, or have mandatory sinking fund installments, on each July 15 beginning no earlier than the year 2014 and ending no later than the year Subject to Section 9, interest on the Bonds shall be payable on January 15, 2015, and semiannually thereafter on each January 15 and July 15 and at

12 maturity. The Council authorizes the issuance and sale of the Bonds on terms as shall be satisfactory to the City Manager; provided, that the Bonds (a) shall have a true or Canadian interest cost not to exceed five percent (5.00%) per year, taking into account any original issue discount or premium; (b) shall be sold at a price not less than 97% nor more than 120% of the original aggregate principal amount thereof; (c) shall have a weighted average maturity of no more than twenty-five (25) years; (d) shall be issued in an aggregate amount not to exceed $65,000,000; (e) shall be subject to optional redemption, so long as the period during which the Bonds may not be optionally redeemed shall not extend beyond July 15, 2025, with a redemption premium no greater than two percent (2.00%) of the principal amount of the Bonds to be optionally redeemed; and (f) shall be issued with such designations, including series designations, as desired for the marketing and sale thereof. In addition, the 2014B Bonds shall not be issued unless the aggregate net present value debt service savings to the City with respect to the Refunded Prior Bonds will be at least three percent (3.00%) (the Targeted Savings ). The Bonds may be issued with bond insurance as security for the principal and interest payments thereon. The Bonds may be issued in series from time-to-time and with different terms as long as such terms are within the parameters noted above. Principal and premium, if any, shall be payable to the registered owners upon surrender of the Bonds as they become due at the designated corporate trust office of the Registrar, as defined below. Interest shall be payable by check or by wire to the registered owners at their addresses as they appear on the registration books kept by the Registrar as of the close of business on the first day of the month during which each interest payment date occurs. In case the date of maturity or redemption of the principal of any Bond or an interest payment date shall be a date on which banking institutions are authorized or obligated by law to close at the place where the designated corporate trust office of the Registrar is located, then payment of principal and interest need not be made on such date, but may be made on the next succeeding date which is not such a date at the place where the designated corporate trust office of the Registrar is located, and if made on such next succeeding date no additional interest shall accrue for the period after such date of maturity or redemption or interest payment date. Principal, premium, if any, and interest on the Bonds shall be payable in lawful money of the United States of America. Interest on the Bonds shall be calculated on the basis of a 360-day year with twelve 30-day months. Each Bond shall bear interest from the interest payment date next preceding the date on which it is authenticated, unless such Bond is (a) authenticated before January 15, 2015, in which case it will bear interest from its dated date, or (b) authenticated upon an interest payment date or after the record date with respect thereto, in which case it will bear interest from such interest payment date (unless payment of interest thereon is in default, in which case interest on such Bond shall be payable from the date to which interest has been paid). Section 3. Book-Entry System. Initially, one Bond certificate for each maturity of each series of the Bonds shall be issued to and registered in the name of The Depository Trust Company, New York, New York ( DTC ), or its nominee. The City has entered into a Blanket Issuer Letter of Representations (the Letter of Representations ) relating to a book-entry system to be maintained by DTC with respect to certain securities issued by the City, including the Bonds. As used herein, the term Securities Depository shall mean DTC or any other securities depository for the Bonds appointed pursuant to this Section 3.

13 In the event that (a) the Securities Depository determines not to continue to act as the securities depository for the Bonds by giving notice to the Registrar and the City, or (b) the City in its sole discretion determines (i) to select a new Securities Depository or (ii) that beneficial owners of Bonds shall be able to obtain certificated Bonds, then the City Manager shall, at the direction of the City, attempt to locate another qualified securities depository to serve as Securities Depository or arrange for the authentication and delivery of certificated Bonds to the beneficial owners or to the Securities Depository s participants on behalf of beneficial owners, substantially in the forms provided for in Exhibit A and Exhibit B. In delivering certificated Bonds, the City Manager shall be entitled to rely on the records of the Securities Depository as to the beneficial owners or the records of the Securities Depository s participants acting on behalf of beneficial owners. Such certificated Bonds will then be registrable, transferable and exchangeable as set forth in Section 8. So long as there is a Securities Depository for the Bonds (1) it or its nominee shall be the registered owner of the Bonds, (2) notwithstanding anything to the contrary in this Resolution, determinations of persons entitled to payment of principal, premium, if any, and interest, transfers of ownership and exchanges, and receipt of notices shall be the responsibility of the Securities Depository and shall be effected pursuant to rules and procedures established by such Securities Depository, (3) the Registrar and the City shall not be responsible or liable for maintaining, supervising, or reviewing the records maintained by the Securities Depository, its participants or persons acting through such participants, (4) references in this Resolution to registered owners of the Bonds shall mean such Securities Depository or its nominee and shall not mean the beneficial owners of the Bonds, and (5) in the event of any inconsistency between the provisions of this Resolution and the provisions of the Letter of Representations, such provisions of the Letter of Representations, except to the extent set forth in this paragraph and the next preceding paragraph, shall control. Section 4. Redemption Provisions. (a) Optional Redemption. Subject to the provisions of Section 2 and 9, the Bonds may be subject to optional redemption prior to their respective stated dates of maturity as determined by the City Manager. (b) Mandatory Sinking Fund Redemption. Subject to the provisions of Section 2, any term bonds may be subject to mandatory sinking fund redemption as determined by the City Manager. If there are any term bonds, on or before the 70th day next preceding any mandatory sinking fund redemption date, the City may apply as a credit against the City s mandatory sinking fund redemption obligation for any Bonds of the same series maturing on such date, Bonds that previously have been optionally redeemed or purchased and canceled or surrendered for cancellation by the City and not previously applied as a credit against any mandatory sinking fund redemption obligation for such Bonds. Each such Bond so purchased, delivered or previously redeemed shall be credited at 100% of the principal amount thereof against the principal amount of the Bonds of the same series required to be redeemed on such mandatory sinking fund redemption date. Any principal amount of Bonds so purchased, delivered or previously redeemed in excess of the principal amount required to be redeemed on such mandatory sinking fund redemption date shall similarly reduce the principal amount of the Bonds of the same series to be redeemed on future mandatory sinking fund redemption dates, as selected by the City Manager.

14 (c) Bonds Selected for Redemption. If less than all of the Bonds are called for optional redemption, the maturities and series of the Bonds to be redeemed shall be selected by the City Manager in such manner as he may determine to be in the best interest of the City. If less than all the Bonds of any maturity or series are called for redemption, the Bonds to be redeemed shall be selected by DTC or any successor Securities Depository pursuant to its rules and procedures or, if the book-entry system is discontinued, shall be selected by the Registrar by lot in such manner as the Registrar in its discretion may determine. In either case, (a) the portion of any Bond to be redeemed shall be in the principal amount of $5,000 or some integral multiple thereof and (b) in selecting Bonds for redemption, each Bond shall be considered as representing that number of Bonds that is obtained by dividing the principal amount of such Bond by $5,000. If a portion of a Bond is called for redemption, a new Bond in principal amount equal to the unredeemed portion thereof will be issued to the registered owner upon the surrender thereof. (d) Notice of Redemption. The City shall cause notice of the call for redemption identifying the Bonds or portions thereof to be redeemed to be sent by electronic or facsimile transmission, registered or certified mail, or overnight express delivery, not less than thirty (30) nor more than sixty (60) days prior to the redemption date, to DTC or its nominee as the registered owner of the Bonds or, if the book-entry system is discontinued, by registered or certified mail to the registered owners of the Bonds to be redeemed. Section 5. Execution and Authentication. The Bonds shall be signed by the manual or facsimile signature of the Mayor or Vice Mayor of the City and the City s seal shall be affixed thereto or a facsimile thereof printed thereon and attested to by the manual or facsimile signature of the Clerk or Deputy Clerk of the City; provided, that no Bond shall be valid until it has been authenticated by the manual signature of an authorized representative of the Registrar and the date of authentication noted thereon. In case any officer whose signature or a facsimile of whose signature shall appear on any Bond shall cease to be such officer before the delivery of a Bond, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes as if such officer had remained in office until such delivery. Any Bond may bear the facsimile signature of or may be signed by such persons as at the actual time of the execution thereof shall be the proper officers to sign such Bond although at the date of such Bond such persons may not have been such officers. Section 6. Bond Form. The 2014A Bonds shall be in substantially the form set forth in Exhibit A attached hereto with appropriate variations for separate series or series designations desired and authorized by Section 2 hereof, and the 2014B Bonds shall be in substantially the form set forth in Exhibit B attached hereto with appropriate variations for separate series or series designations desired and authorized by Section 2 hereof. Section 7. Pledge of Full Faith and Credit. The full faith and credit of the City are irrevocably pledged for the payment of principal of, premium, if any, and interest on the Bonds. Unless other funds are lawfully available and appropriated for timely payment of the Bonds, the City shall levy and collect an annual ad valorem tax, over and above all other taxes authorized or limited by law and without limitation as to rate or amount, on all locally taxable property in the City sufficient to pay the principal of, premium, if any, and interest on the Bonds, as the same become due.

15 Section 8. Registration, Transfer and Owners of Bonds. The Council hereby selects U.S. Bank National Association as the paying agent and registrar for the Bonds (the Registrar ). The Registrar shall maintain registration books for the registration of the Bonds. Upon surrender of any Bonds at the designated corporate trust office of the Registrar, together with an assignment duly executed by the registered owner or his duly authorized attorney or legal representative in such form as shall be satisfactory to the Registrar, the City shall execute, and the Registrar shall authenticate and deliver in exchange, a new Bond or Bonds having an equal aggregate principal amount, in authorized denominations, of the same form, series and maturity, bearing interest at the same rate, and registered in names as requested by the then registered owner or his duly authorized attorney or legal representative. Any such exchange shall be at the expense of the City, except that the Registrar may charge the person requesting such exchange the amount of any tax or other governmental charge required to be paid with respect thereto. New Bonds delivered upon any transfer or exchange shall be valid obligations of the City, evidencing the same debt as the Bonds surrendered, shall be secured by this Resolution and entitled to all of the security and benefits hereof to the same extent as the Bonds surrendered. The Registrar shall treat the registered owner as the person exclusively entitled to payment of principal, premium, if any, and interest and the exercise of all other rights and powers of the owner, except that interest payments shall be made to the person shown as owner on the registration books on the first day of the month during which each interest payment date occurs. Section 9. Sale of Bonds. The Council approves the following terms of the sale of the Bonds. The Bonds will be sold by competitive bid. The City Manager, in collaboration with Davenport & Company, LLC, the City s financial advisor (the Financial Advisor ), shall receive bids for the Bonds and award the Bonds to the bidder providing the lowest true or Canadian interest cost, all subject to the limitations set forth in Section 2. The Council also authorizes the 2014A Bonds and 2014B Bonds to be bid separately if the City Manager, in collaboration with the Financial Advisor, determines separate bidding to be in the City s best interests. The Council further authorizes the City Manager, in collaboration with the Financial Advisor, to (a) determine the principal amount of the Bonds, subject to the limitations set forth in Section 2, (b) determine the maturity schedule of the Bonds, subject to the weighted average maturity limitations set forth in Section 2, and (c) establish the redemption provisions for the Bonds, subject to the limitations set forth in Section 2. Prior to the sale of the Bonds, the City Manager, in collaboration with the Financial Advisor, may change the dated date of the Bonds and the payment dates provided therein (so long as the interest payment dates for any series are semi-annual) to facilitate the sale and delivery of the Bonds. The actions of the City Manager in selling the Bonds shall be conclusive, and no further action with respect to the sale and issuance of the Bonds shall be necessary on the part of the Council. Section 10. Sale Documents. The use and distribution of the Notice of Bond Sale pursuant to which the Bonds will be offered for sale are hereby authorized and approved. Section 11. Official Statement. The form of the Preliminary Official Statement of the City, to be dated the date of its mailing (the Preliminary Official Statement ), has been made available to the Council prior to the adoption of this Resolution. The use and distribution of the Preliminary Official Statement, in substantially the form made available to the Council, are hereby authorized and approved. The

16 Preliminary Official Statement, may be completed and deemed final by the City Manager as of its date, within the meaning of Rule 15c2-12 of the Securities and Exchange Commission (the Rule ), except for the omission from the Preliminary Official Statement of such pricing and other information permitted to be omitted pursuant to the Rule. The delivery of the Preliminary Official Statement to the Financial Advisor shall be conclusive evidence that it has been deemed final as of its date by the City Manager, except for the omission of such pricing and other information. The City Manager shall make such compilations, omissions, insertions, and changes in the Preliminary Official Statement not inconsistent with this Resolution as are necessary or desirable to complete it as a final Official Statement (the Official Statement ). The City Manager shall arrange for the delivery to the successful bidder of a reasonable number of copies of the Official Statement, within seven (7) business days after the Bonds have been sold, for delivery to each potential investor requesting a copy of the Official Statement and to each person to whom the successful bidder initially sells Bonds. The Mayor, the Vice Mayor and the City Manager, any of whom may act, are each hereby authorized, on behalf of the City, to deem the Official Statement to be final as of its date within the meaning of the Rule. The Mayor, the Vice Mayor and the City Manager, any of whom may act, are each hereby authorized and directed to execute the Official Statement, which execution shall be conclusive evidence that the Official Statement has been deemed final as of its date. Section 12. Continuing Disclosure. A substantially final form of the Continuing Disclosure Certificate to be provided by the City (the Continuing Disclosure Certificate ), evidencing conformity with certain provisions of the Rule, has been made available to the Council prior to the adoption of this Resolution. The execution, delivery, use, and distribution of the Continuing Disclosure Certificate, in substantially the form made available to the Council, are hereby authorized and approved. The Mayor, the Vice Mayor and the City Manager, any of whom may act, are each hereby authorized and directed to execute and deliver the Continuing Disclosure Certificate. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate shall not be considered a default under this Resolution or the Bonds; provided, that any Holder of the Bonds (as defined in the Continuing Disclosure Certificate, including owners of beneficial interests in the Bonds) may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the City to comply with its obligations under this Section 12 and the Continuing Disclosure Certificate. Section 13. Preparation and Delivery of Bonds. After the Bonds have been awarded, the Mayor or Vice Mayor and the Clerk or Deputy Clerk of the City are authorized and directed to take all proper steps to have the Bonds prepared, executed and authenticated in accordance with their terms and to deliver the Bonds to the successful bidder thereof upon payment for the Bonds. Section 14. Selection of Bond Counsel. The Council hereby consents to Troutman Sanders LLP serving as Bond Counsel to the City in connection with the issuance of the Bonds.

17 Section 15. Refunding of the Refunded Prior Bonds. Subject to the satisfaction of the Targeted Savings, the Council hereby authorizes the optional redemption of the Refunded Prior Bonds on their respective first call dates (the Redemption Dates ) at a redemption price equal to 100% of the outstanding principal amount thereof plus accrued interest to the respective Redemption Dates and any applicable redemption premium. The principal amount of the 2014B Bonds will not exceed the amount necessary to retire the Refunded Prior Bonds and pay the costs of issuance of the 2014B Bonds. There are currently no sinking, escrow or other funds which are available for the payment of principal of, premium, if any, and interest on the Refunded Prior Bonds. Section 16. Escrow Agreement. The execution and delivery of an Escrow Deposit Agreement, dated as of its execution and delivery (the Escrow Agreement ), between the City and U.S. Bank National Association, as escrow agent (the Escrow Agent ), is hereby approved. The Mayor, the Vice Mayor and the City Manager, any of whom may act, are each hereby authorized and directed to execute and deliver the Escrow Agreement. There is hereby created by the City a trust fund to be designated the City of Harrisonburg, Virginia General Obligation Public Improvement Refunding Bonds, Series 2014B Escrow Fund (the Escrow Fund ) and held by the Escrow Agent pursuant to the Escrow Agreement. The City shall irrevocably deposit in the Escrow Fund an amount of proceeds received by the City from the sale of the 2014B Bonds which will be sufficient to provide (taking into account investment earnings or not taking them into account in the discretion of the City) for the payment of the principal of, redemption premium and interest on the Refunded Prior Bonds on the Redemption Dates and for the principal and interest coming due thereon prior to the Redemption Dates. Amounts deposited in the Escrow Fund will be invested as set forth in the Escrow Agreement. Section 17. Arbitrage Covenants. (a) No Composite Issue. The City represents that there have not been issued, and covenants that there will not be issued, any obligations that will be treated as part of the same issue of obligations as the Bonds within the meaning of the Internal Revenue Code of 1986, as amended, including regulations issued pursuant thereto (the Code ). (b) No Arbitrage Bonds. The City covenants that it shall not take or omit to take any action the taking or omission of which will cause the Bonds to be arbitrage bonds within the meaning of Section 148 of the Code, or otherwise cause interest on the Bonds to be includable in the gross income for federal income tax purposes of the registered owners thereof under existing law. Without limiting the generality of the foregoing, the City shall comply with any provision of law which may require the City at any time to rebate to the United States any part of the earnings derived from the investment of the gross proceeds of the Bonds, unless the City receives an opinion of nationally recognized bond counsel that such compliance is not required to prevent interest on the Bonds from being includable in the gross income for federal income tax purposes of the registered owners thereof under existing law. The City shall pay any such required rebate from its legally available funds. Section 18. Non-Arbitrage Certificate and Elections. Such officers of the City as may be requested are authorized and directed to execute an appropriate certificate setting forth the expected use and investment of the proceeds of the Bonds in order to show